#1
Which of the following best describes a debit card?
A card that allows you to borrow money from the bank
A card linked directly to your bank account, deducting funds instantly for purchases
A card exclusively for cash withdrawals from ATMs
A credit card with a predetermined spending limit
#2
What is the primary advantage of using a debit card over a credit card?
Earn rewards points for purchases
Build credit history
Avoid accruing debt by spending only what you have
Access to cash advances
#3
What does 'contactless payment' mean in the context of debit cards?
Making payments using only cash
Paying via smartphone apps only
Tapping your card on a reader without inserting or swiping
Using a card reader at ATMs
#4
What should you do if you suspect your debit card has been lost or stolen?
Wait a few days to see if it turns up
Immediately notify your bank to freeze the card
Continue using the card cautiously
Deactivate the card from your online banking account
#5
Why is it important to review your bank statements regularly when using a debit card?
To determine the balance of your bank account
To identify any unauthorized transactions
To calculate your monthly expenses
To check for ATM locations
#6
What is the purpose of a personal identification number (PIN) associated with a debit card?
To identify the cardholder's age
To track the cardholder's spending habits
To authorize transactions and ensure security
To access the cardholder's credit score
#7
Which of the following statements about overdraft fees on debit cards is TRUE?
They are charged only if you spend beyond your credit limit
They are never charged on debit card transactions
They occur when you spend more money than is available in your bank account
They are fixed fees applied monthly
#8
What is the typical daily spending limit on most debit cards?
Unlimited
$500
$1000
Varies depending on the bank and account type
#9
What is the significance of the CVV (Card Verification Value) on a debit card?
It is used to authenticate online transactions
It represents the cardholder's signature
It is required for ATM withdrawals
It is used to track spending habits
#10
Which of the following actions can help you avoid unnecessary fees when using a debit card abroad?
Notify your bank of your travel plans in advance
Only use ATMs owned by your bank
Always choose to be charged in your home currency
Use your debit card for all purchases
#11
Which of the following statements regarding debit card rewards programs is TRUE?
Debit cards do not offer rewards programs
Rewards are typically earned based on the amount spent
Debit card rewards can only be redeemed for cash
Rewards are earned regardless of spending habits
#12
What is the difference between a debit card and a prepaid card?
Both debit and prepaid cards are linked to bank accounts
Debit cards deduct funds from a bank account, while prepaid cards require upfront loading
Prepaid cards offer better rewards than debit cards
Debit cards are more secure than prepaid cards
#13
How can you protect your debit card from fraudulent transactions?
Keep your PIN written on the card
Share your card details with friends
Regularly monitor your account activity
Use your card for online purchases only
#14
What does 'merchant category code' (MCC) represent in the context of debit card transactions?
It identifies the type of business accepting the card payment
It denotes the cardholder's credit limit
It indicates the card expiration date
It represents the transaction ID
#15
In case of a disputed transaction on your debit card, what is the first step you should take?
Contact the merchant directly to resolve the issue
Dispute the charge with your bank or card issuer
Ignore the transaction as it may resolve itself
File a police report immediately
#16
What is the 'zero liability policy' regarding debit card fraud?
It means you are liable for all fraudulent transactions
It means the bank is liable for all fraudulent transactions
It means you are liable only for a portion of fraudulent transactions
It means you are not liable for fraudulent transactions under certain conditions